On 13 October, Allwyn, originally founded in the Czech Republic and helmed by Czech billionaire Karel Komárek through his investment group KKCG, announced it had acquired the remaining 48% stake in Greece’s national lottery and betting operator OPAP. This acquisition solidifies Allwyn’s position as Europe’s largest lottery operator, bringing the entire operation under a single umbrella.
The combined valuation of the business now stands at approximately €16 billion. In a time when European gambling operators are navigating through a labyrinth of regulatory changes, technological disruptions, and the call for expansion, this move represents both a strategic defense and an offensive leap. It’s a significant pivot in an industry that has historically been more reserved.
Allwyn’s initial investment in OPAP dates back to 2013, making the complete buyout a pivotal moment for not only the companies involved but also the broader European gambling sector. This deal signals a shift in how lottery companies can operate, akin to high-growth technology firms, according to insights from Ben Robinson, an M&A advisor at Corfai Capital.
The acquisition marks a transformation for Allwyn, which altered its legal footing to a Swiss-based entity in October 2024. Now it stands as a vertically integrated, multi-product powerhouse with a sprawling presence across Europe and aspirations for a stake in the US market. This consolidation positions Allwyn as the second-largest listed gaming group globally, boasting a pro forma EBITDA of €1.9 billion amid double-digit growth, trailing only Flutter Entertainment, projected to reach around $3.3 billion in EBITDA by 2025.
Allwyn’s relationship with OPAP has been more of a strategic partnership rather than a mere acquisition. Over the years, Allwyn, initially Sazka, incrementally increased its stake, culminating in the 48.1% ownership in 2022. This acquisition is what some might call a “decade-long courtship,” where Allwyn meticulously examined OPAP’s operations and co-created a technological roadmap.
Ed Birkin of H2 Gambling Capital views this development as an expected progression rather than a surprise. He points out that owning 52% prior meant the complete acquisition was a logical step. The real significance lies in what this enables for Allwyn: a leap towards becoming a global force in gambling.
The integration strategy was emphasized during a joint conference with Allwyn and OPAP executives on 12 October. Allwyn CEO Robert Chvátal described the merger as a cornerstone in the company’s trajectory. By unifying their brand, sponsorship strategies, and leveraging in-house tech and content, the two entities aim to accelerate growth. OPAP’s CEO Jan Karas reiterated this vision, noting the merger as a catalyst for innovation while maintaining a strong Greek footprint.
The focus remains on operational cohesion, encapsulated in their motto: “one brand, one tech, one team.” The tech integration, particularly the deployment of Allwyn’s AI and data analytics, could reshape OPAP’s retail operations, possibly phasing out long-standing tech partners like Intralot, thereby giving Allwyn tighter reigns over customer engagement and operating costs.
For OPAP investors, this transition is not just a change in ownership but a re-defined future trajectory. The promise of a minimum €1/share dividend from FY 2026 underscores the financial allure, with current dividend yields around 7.6%, translating to a forward yield of approximately 5%—outpacing many US blue-chips.
The acquisition exemplifies a broader consolidation trend within the gambling industry, spurred by stringent regulations and tough market conditions. Operators across Europe and beyond are seeking scale and diversification to enhance their competitive edge. According to Paul Richardson, an M&A specialist at Partis Solutions, Allwyn’s move is a “smart piece of finance,” preparing it for even larger ventures in new markets.
A public listing in Athens not only provides Allwyn with liquidity but also positions it for potential secondary listings in New York or London. However, before attempting a US listing, the group must demonstrate effective execution of its strategies.
The deal also fortifies OPAP’s market position as part of a larger, global entity rather than as a standalone national leader. Birkin believes this will be more advantageous in the long run. Yet, he considers the actual acquisition of the remaining 48% as somewhat inconsequential on a broader European or global scale.
Nevertheless, Robinson anticipates that Allwyn’s takeover might influence the European market significantly, potentially prompting state lotteries to privatize or enter partnerships, thus intensifying competition.
The industry’s move towards scale and diversification is clear, with Allwyn aiming to rebrand itself as a comprehensive gaming and entertainment platform, uniting national lottery licenses with sports betting, fantasy sports, and casino offerings. The recent acquisition of US-based PrizePicks, focused on fantasy sports, aligns with this strategy but does not come without challenges, including legal hurdles that must be navigated before presenting it to US investors.
Despite these challenges, Allwyn’s global ambition remains undeterred. A New York listing is under consideration, although past obstacles, like a cancelled SPAC deal in 2022, remind the group of the complexities involved. Allwyn’s recent moves, particularly the €16 billion OPAP deal, poise it for a more traditional IPO approach, bolstered by its growing presence in US fantasy sports.
The company’s financial health appears stable, with pro forma net leverage at approximately 2.7x EBITDA and a target of 2.5x. CEO Chvátal assured investors that the Athens listing would not involve issuing new equity, maintaining the current public stock availability.
As Allwyn continues to seek further M&A opportunities, the focus remains on effectively integrating its operations and establishing a foothold across continents. With OPAP fully under its control, Allwyn is positioned to compete on the global stage, yet the real challenge lies in execution and delivering on its promises.
4.1/5
